Bill Text: TX SB208 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the establishment of the workforce housing capital investment fund program to fund the development of workforce housing in this state; authorizing a fee.
Sponsorship: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced - Dead) 2025-04-24 - Left pending in committee [SB208 Detail]
Download: Texas-2025-SB208-Introduced.html
| 89R1830 JG-F | ||
| By: West | S.B. No. 208 | |
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| relating to the establishment of the workforce housing capital | ||
| investment fund program to fund the development of workforce | ||
| housing in this state; authorizing a fee. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The legislature finds that: | ||
| (1) the creation of the workforce housing capital | ||
| investment fund and use of the fund under Subchapter EE, Chapter | ||
| 2306, Government Code, as added by this Act, will substantially | ||
| increase the development of workforce housing for households that | ||
| earn between 30 and 80 percent of the area median income; | ||
| (2) the workforce housing capital investment fund will | ||
| enable loan recipients to access needed capital to plan for future | ||
| growth; | ||
| (3) the creation of more housing options in this state | ||
| will: | ||
| (A) help stabilize the state economy and local | ||
| economies across this state; and | ||
| (B) reduce the need for other services provided | ||
| by this state and political subdivisions of this state; | ||
| (4) skilled construction and trade labor shortages | ||
| impact the cost of housing at all income levels; and | ||
| (5) the use of the workforce housing capital | ||
| investment fund for the purposes of and in the manner described by | ||
| Subchapter EE, Chapter 2306, Government Code, as added by this Act, | ||
| is: | ||
| (A) in furtherance of the public purposes of | ||
| mitigating housing deficits and providing housing to a critical | ||
| segment of this state's population that is not often served by | ||
| for-profit housing; and | ||
| (B) for the benefit of both this state and | ||
| political subdivisions of this state that are impacted by a lack of | ||
| workforce housing to provide to qualified homebuyers. | ||
| SECTION 2. Chapter 2306, Government Code, is amended by | ||
| adding Subchapter EE to read as follows: | ||
| SUBCHAPTER EE. WORKFORCE HOUSING CAPITAL INVESTMENT FUND PROGRAM | ||
| Sec. 2306.701. DEFINITIONS. In this subchapter: | ||
| (1) "Fund" means the workforce housing capital | ||
| investment fund established under this subchapter. | ||
| (2) "Program" means the workforce housing capital | ||
| investment fund program established under this subchapter. | ||
| (3) "Program administrator" means the nonprofit | ||
| housing organization with which the department contracts to | ||
| administer the program under Section 2306.703. | ||
| (4) "Program recipient" means a loan recipient under | ||
| the program. | ||
| Sec. 2306.702. WORKFORCE HOUSING CAPITAL INVESTMENT FUND. | ||
| (a) The workforce housing capital investment fund is a special fund | ||
| in the state treasury outside the general revenue fund. | ||
| (b) The fund consists of: | ||
| (1) gifts, grants, and donations received by this | ||
| state for the purposes of the fund; | ||
| (2) legislative appropriations for the purposes of | ||
| this subchapter; | ||
| (3) any fees or other sources of revenue that the | ||
| legislature dedicates for deposit to the fund; | ||
| (4) repayments of loans made from the fund; and | ||
| (5) interest earned on money deposited to the fund. | ||
| Sec. 2306.703. PROGRAM ADMINISTRATION. (a) The department | ||
| shall contract with a nonprofit housing organization through a | ||
| one-time competitive procurement process to administer the program | ||
| in accordance with this subchapter. | ||
| (b) The nonprofit housing organization with which the | ||
| department contracts under this section must be a nonprofit | ||
| organization designated as a Section 501(c)(3) organization by the | ||
| Internal Revenue Service that: | ||
| (1) has a statewide service area with organizational | ||
| affiliates; | ||
| (2) provides to organizations designated as Section | ||
| 501(c)(3) organizations training and technical support, resource | ||
| development, mortgage services, and disaster preparedness and | ||
| response resources; | ||
| (3) provides financial literacy education to | ||
| low-income homebuyers; | ||
| (4) builds single-family residential homes; and | ||
| (5) works with homebuyers who contribute to the | ||
| construction of their home or the rehabilitation of another | ||
| individual's home, including as a certified nonprofit | ||
| owner-builder housing program provider under Subchapter FF with not | ||
| less than 15 years of experience. | ||
| Sec. 2306.704. USE OF FUND. (a) The department shall | ||
| provide money from the fund to the program administrator to make and | ||
| disburse zero-interest loans to program recipients in accordance | ||
| with this subchapter. | ||
| (b) Money provided from the fund to program recipients may | ||
| be used only to pay the costs associated with the development and | ||
| construction of workforce, single-family housing projects | ||
| primarily for households that earn between 30 and 80 percent of the | ||
| area median income, including: | ||
| (1) planning and design costs; | ||
| (2) land acquisition costs; | ||
| (3) impact fees and permitting costs; | ||
| (4) costs associated with flood mitigation, water | ||
| quality, and environmental controls; and | ||
| (5) costs associated with infrastructure, including | ||
| roads, sidewalks, utilities, and broadband service. | ||
| (c) Interest earned on money deposited to the fund may be | ||
| used by the program administrator for: | ||
| (1) program staffing and other related costs | ||
| associated with administering the program; and | ||
| (2) training programs associated with the purposes of | ||
| this subchapter. | ||
| Sec. 2306.705. APPLICATION REQUIREMENTS; PROGRAM RECIPIENT | ||
| SELECTION. (a) The department shall prescribe the form and manner | ||
| for an applicant to apply for a loan under the program. | ||
| (b) An application must satisfy the requirements prescribed | ||
| by the department and demonstrate that the applicant: | ||
| (1) is incorporated under this state's laws as a | ||
| nonprofit organization; | ||
| (2) is organized for the purpose of building | ||
| owner-occupied residential homes for households that earn between | ||
| 30 and 80 percent of the area median income and has carried out that | ||
| purpose for not less than 15 years; and | ||
| (3) has experience in providing training and technical | ||
| support, resource development, mortgage services, and disaster | ||
| preparedness and response resources that expand the applicant's | ||
| capacity to serve communities in this state. | ||
| (c) The program administrator shall review applications and | ||
| select applicants to provide loans to under the program. In | ||
| selecting applicants, the program administrator: | ||
| (1) shall consider the quality of the application and | ||
| the applicant's ability to carry out the purposes of this | ||
| subchapter; and | ||
| (2) may give priority to applicants that partner with | ||
| organizations that provide training opportunities to construction | ||
| trade workforce members. | ||
| (d) The program administrator may require an applicant to | ||
| pay an origination fee on a loan application. | ||
| Sec. 2306.706. ANNUAL REPORT; INTERNET POSTING. (a) The | ||
| program administrator shall prepare and submit to the department an | ||
| annual report on the program. The report must include: | ||
| (1) information on the program recipients that | ||
| received a loan under the program during the preceding year; | ||
| (2) a description of each workforce housing project | ||
| funded by a loan under the program, including: | ||
| (A) the project's expected completion date and | ||
| information on the progress made during the preceding year toward | ||
| completing the project; | ||
| (B) the number of families the project is | ||
| expected to serve; and | ||
| (C) the total amount and repayment status of the | ||
| loan; and | ||
| (3) other information the department requires. | ||
| (b) The department shall post on the department's Internet | ||
| website the information submitted to the department under this | ||
| section. | ||
| Sec. 2306.707. INDEPENDENT FINANCIAL AUDIT. (a) The | ||
| program administrator shall annually commission from a certified | ||
| public accounting firm an independent financial audit of the | ||
| program administrator's financial activities in relation to the | ||
| program and the use of money in the fund. The program administrator | ||
| shall provide the results of the audit to the department for the | ||
| department's review and evaluation. | ||
| (b) In the event the department determines from the results | ||
| of the audit that money from the fund has not been used in | ||
| accordance with the purposes of this subchapter, the department may | ||
| require repayment of the money over a period and in the manner the | ||
| department requires. | ||
| Sec. 2306.708. RULES. The department shall adopt rules to | ||
| implement the program and carry out this subchapter, including | ||
| rules on: | ||
| (1) application procedures and requirements for an | ||
| applicant to receive a loan under the program; | ||
| (2) the investment of money in the fund; and | ||
| (3) the administration of the fund. | ||
| SECTION 3. As soon as practicable after the effective date | ||
| of this Act, the Texas Department of Housing and Community Affairs | ||
| shall adopt rules to implement Subchapter EE, Chapter 2306, | ||
| Government Code, as added by this Act. | ||
| SECTION 4. This Act takes effect September 1, 2025. | ||
